The coronavirus has affected each and every industry all over the world but the worst affected is the automobile industry. The outbreak has not only dented the sales but also it has great more problems in the industry.
Many auto experts are indicating that in this extraordinary time people will buy a car using ride-hailing service are going to change significantly. The personal vehicle will be the one thing people will focus upon while concerning spending on goods will also play a major role in decision making.
This extraordinary situation will help to increase the sale of small cars instead of focusing on large SUVs. This trend will bring out the fortune of small cars in India. And this will be beneficial for the small car makers. No, they will focus on the mass-market segment.
Several auto experts are stating that first-time buyers for the car industry will go up to 10-15% after this crisis. The change in consumer behaviour is going to influence the car-buying decision in the coming days.
Vice President, Equity Analyst, Auto and Auto Ancillaries, Elara Capital Jay Kale stated that
“Consumers will try to handle this easily as they have to play safely in terms of the brand so they will focus on trusted brands like Maruti Suzuki and Hyundai.”
Maruti Suzuki and Hyundai Motors India Ltd are two of the biggest automobile companies in India. People prefer these automakers more than any other company. These companies will be a benefit in the COVID-19 era as they make small cars. Also, these both companies are established brands in India which will help in this pandemic situation.
Maruti Suzuki has some of the small cars like Alto, WagonR, Celerio and S-Presso and Hyundai has Santro and Grand i10.
If you look at the sale, the four of these models from Maruti Suzuki sold 4,67,125 units in FY20 out of 14,14,346 units registered in the same period. On the other hand, Hyundai Santro and Grand i10 combined sold 1,51,206 units in the last fiscal out of Hyundai 4,85,389 units registered in the same time period.